Tesla stock soars on news of a more affordable vehicle; it is already America’s cheapest car to own, new report Says

Tesla reported disappointing first-quarter earnings on Tuesday, but after Elon Musk said Tesla plans to produce a more affordable vehicle the stock has surged today; Tesla was up over 10% in early Wednesday trading.  The discussion of a more affordable Tesla model comes on the heels of the company already being the least expensive car brand to own.  A new study from Consumer Reports found that Tesla was the least expensive car brand to repair and maintain based on data for a ten-year period. Tesla needed some positive news. Sales were below expectations for the first quarter. Its new Cybertruck has had recall problems. It has been forced to drop car and software prices to stimulate sales. Its stock has fallen 40% in 2024.

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Among the most important considerations when people buy a car is the long-term costs of maintaining a car. This can include gas prices, monthly loan payments, and insurance.

Expensive Maintenance

In Consumer Reports’ “2023 Annual Auto Surveys,” the authors said,  “When comparing cumulative costs by brand for years one through five and six through 10, we found that Tesla had the lowest maintenance costs.” Tesla’s cumulative figure was $4,035. Land Rover’s figure was $19,250 at the far end of the spectrum.

Overall, German cars were the most expensive to maintain. The study’s authors wrote, “…several German automakers are clustered as the most expensive brands, namely Audi, BMW, Mercedes-Benz, and Porsche.”

Climatecrisis247 believes this may indicate that EVs, which have many fewer moving parts than fossil fuel-powered cars, may need less repair work because of this.